The Nigerian Senate has scaled the second reading of a bill that would introduce a legal framework for regulating cryptocurrency and digital assets in the country.
The proposed legislation, titled the Virtual Assets Service Providers (Regulation) Bill, 2026, cleared its second reading on Tuesday.
Lawmakers argued that the absence of clear rules has exposed millions of Nigerians to fraud, financial losses and other risks linked to digital assets.
Deputy Senate President, Barau Jibrin, led the debate on the bill.
Bill Seeks Order Without Stifling Innovation
He said the legislation aims to bring order, confidence and accountability to Nigeria’s virtual asset ecosystem without stopping innovation.
Nigeria remains one of the world’s largest markets for cryptocurrency adoption, with millions of young Nigerians using digital assets for investment, payments and business.
“The intent of this Bill is simple: to bring order, confidence, and accountability into the virtual asset ecosystem. It does not seek to stifle innovation or punish creativity. On the contrary, it aims to create a fair and predictable environment where innovation can thrive under clear rules and responsible oversight,” he said.
If passed, the bill will require operators of cryptocurrency exchanges, blockchain-based investment platforms and other virtual asset service providers to obtain licenses and follow regulatory standards.
The law is designed to protect consumers and the financial system, while also strengthening Nigeria’s ability to fight money laundering, terrorism financing and other illicit activities.
“This bill will ensure that those who operate as virtual asset service providers are properly licensed, transparent, and compliant with laws designed to protect the public and the financial system,” he stated.
Barau said a regulated virtual asset market could boost investor confidence and attract responsible investment into Nigeria’s fintech and blockchain industries.
He added that countries such as Kenya, South Africa and Ghana are already building legal frameworks for virtual assets.
“With the passage of this Bill, we will provide the legal clarity and confidence that innovators, entrepreneurs, and investors have long awaited,” he said.
Lawmakers Say Regulation Will Protect Crypto Users
Other lawmakers supported the bill, saying it could give crypto users stronger safeguards against fraudulent schemes.
They also said legitimate operators would gain legal certainty to attract investment and expand their businesses.
The bill has been referred to the relevant Senate committee for further scrutiny and a report back to the chamber.
This development marks a major step toward formal regulation of Nigeria’s growing digital asset industry.
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